End of Year Financial Statements – 30 June 2018 – Assistance

The Accountants within the office of the Board of Administration of the Methodist Church of New Zealand are in the process of planning and allocating work for July, August and September 2018. As you will be aware this is a very busy time of year with many financial statements needing to be prepared, audited or reviewed, signed and distributed.  The time we have available is limited during this time.

Once again, we will have the assistance of a Contract Accountant, Christine Chisholm, who will be available to prepare the Annual Financial Statements on parish’s behalf.  She’ll be working abroad from London but working through the Methodist Church and have access to MCNZ systems.  The hours she will be available to call treasurers will be from 8am to 10.30am and 6pm to 8pm Monday to Friday New Zealand time.  Contact details will be given to those entities who wish to have Christine prepare the annual financial statements later in the year.

Last year we had a flat fee of $500.00 per entity.  This was heavy subsidised by the Board of Administration. What we discovered last year was that that the hours required to prepare the financial information ready for the financial statements to be finalised ranged from an hour or so to 35 to 40 hours.  This year we are looking at a two tier system based on the hours that Christine provides help in preparing the accounting information ready for the production of the financial statements and then preparation of the financial statements.  The cost structure proposed is this:

Hours Worked Cost
Up to a maximum of 10 hours $500.00
Over 10 hours of $500.00 plus the actual hourly cost for time over 10 hours.

 

The Board of Administration is still providing a subsidy for this work and the above charges do not reflect the actual costs.  The service being provided acknowledges that there are some people who require little help and others that require significant help.  For those who used this service last year and are likely to be in the second group, Peter van Hout will email you separately in April to let you know.

While the above table is the set rule, we will take care on the charges.  If your final hours used were 10.5 hours, for example, then you will not be charged for the additional 0.50 of an hour and you would not be charged $500.  There is some discretion.  However, if we believe that Christine will need more hours than first anticipated, then we will alert you to that. I do not wish to be in a position whereby the other accountants in the office are placed under additional stress during July, August and September and hence why Christine has been engaged to do the work.

Can you indicate to Peter van Hout (peterv@methodist.org.nz) if there is a strong likelihood that the parish will require us to assist them in completing their annual accounts to 30 June 2018.  Could you let Peter know by Friday 4th May 2018 by sending him an email as we need to be in a position to finalise a contract with Christine as soon as possible.  We will also try to give you a “rough” idea on your likely cost based upon the hours Christine spent on your accounts last year.